Commercial property owners worldwide experience the same dilemma- what do you do when you unexpectedly find yourself with empty space?
People become part of the furniture, and that’s no truer than in the multi-tenanted office space industry. An office space that lacks a tenant can cause financial disruption considering costly fit-outs and rises in interest rates. When 63% of employees prefer a hybrid model of working, it begs the need for flexibility in the business model too.
There’s been an 83% increase in the demand for flexible spaces in the last couple of years. Tenants are looking for more options to increase their workflow whilst reducing expenses and constraints. This gives building owners an opportunity to strategically repurpose underutilised and rigid office agreements to a flexible working environment that better aligns with the evolving expectations of modern tenants.
So, what are the available options for landlords? Essentially, there are two primary scenarios to consider: managing the space independently or exploring a partnership with an experienced, flexible workspace operator.
In-House Flexible Workspace
With some flex operators like WeWork facing tough times and the threat of going bust, some landlords are looking to offer the proposition in-house. Others are already doing so successfully, as the model swaps excessive space and lengthy leases of conventional commercial real estate for flexible short-term contracts tailored to the client’s needs.
Working in-house eliminates management fees and gives the landlord full control over property maintenance and tenant relationships. In-house flex options also allow for more potential to pivot and react as new rental opportunities arise. This means landlords can align with market trends in hybrid working and generate more revenue per square meter through lower vacancy rates and diversified offerings.
Ensuring a seamless and uninterrupted tenant experience in a flexible workplace may present its share of operational challenges, but with the right partners and resources, the transition can be relatively smooth.
Powering Your Potential
Taking charge of the technology that powers the workspace plays a significant role in ensuring smooth operations and an uninterrupted tenant experience. We’ve helped many landlords take on coworking spaces and create successful flexible workspaces of their own, and are here to guide and support landlords when preparing to reposition their asset. With over 10 years of experience in the flexible workspace market, we can provide the tools landlords need to compete and win in today’s environment. Ultimately, becoming cash generative quicker.
Communicate can re-position existing fibre provisions and install new network connectivity into the building to a variety of in-house capabilities and resources to make sure there are no connectivity gaps within the space. This may include enterprise fibre relationships, project management, instant access to available hardware and software services, and marketing resources. We can help landlords keep the day-to-day operations flowing smoothly and reimagine the way they do leasing.
With 41% of office occupiers expecting to increase their use of flexible workspaces, the unique opportunity for landlords to diversify their revenue streams and cater to the growing demand for flexible work solutions is growing.
Get in touch to find out more about how Communicate removes the complexity of network, space, and occupier management enabling landlords to provide exceptional customer experiences across their buildings and spaces.